By Andy Sutherden
Managing Director, Sports Marketing & Sponsorship
Hill & Knowlton EMEA

By Scott Kirkpatrick
Senior Vice President and U.S. Director of Sports Marketing & Sponsorship
Hill & Knowlton US

By Eddie Moore
Director, Sports Marketing & Sponsorship
Hill & Knowlton Asia Pacific

With the continued onslaught of media fragmentation and the slow demise of the 30 second ad, marketers are looking for innovative and more efficient channels to reach their target audiences. For this reason, sponsorship and alliance marketing is booming…… the percentage of marketing spend on sponsorship in 2006 was 8% ($30billion) and is expected to rise to 15% by 2010.

However, before acquiring third party rights, or participating in commercial partnership programs, prepare yourself and your clients by reviewing what we consider to be the ‘Ten Commandments’ of sponsorship and alliance marketing. They are not intended to stop you from acting, like many of the original Ten, but rather serve as a basis for successful marketing program.

1) Buy what you need, use what you buy
Resist the temptation to buy sponsorship rights that you are unlikely to use. It amounts to a waste of money and a reduced ROI when the sponsorship is reviewed. Successful activation of ALL rights purchased relies on thorough consultation of all internal stakeholders before a contract negotiation even starts. If you can’t get the resources to properly leverage the sponsorship assets, don’t buy them.

2) Be clear on who is funding the sponsorship
Is it one brand? One business unit? Multiple brands operating under the corporate brand? Multiple markets or just one market? This will help the sponsorship team allocate rights to ensure an equitable split amongst the investing brands and geographies. Without this clarity, the business will become disillusioned very quickly and internal issues will compromise effective activation.

3) Make sponsorship your day job
Success only comes when there is an internal ‘champion’ who connects all the key stakeholders within the business. Best-in-class sponsorship activation only happens when there is a dedicated resource assigned to work on the project who: understands the business; can deal with the disparate needs of all parties with a vested interest; is mandated to make decisions on behalf of multiple stakeholders; can help demonstrate an ROI to each of these stakeholders, in each geography (if multi-market); and can showcase success and share key learnings. This resource needs to be properly staffed, funded, and authorized to be successful.

4) Integration, integration, integration
Best-in-class sponsorship activation only occurs when the rights purchased are successfully implemented through-the-line of marketing disciplines. This underlines the importance having an internal champion who can engage the various stakeholders, and educate those who may not fully understand the opportunity. Installing sponsorship integration teams (or a dedicated task force), including internal audiences and relevant agencies, is a pre-requisite for success.

5) Don’t forget the staff
Through-the-line activation also means engaging the staff. If used properly, sponsorship can boost employee morale and therefore increase productivity. Make employees a key target audience during the sponsorship planning phase and not an afterthought.

6) Research is king!
Sponsorship is now a sophisticated marketing tool. Purchasing decisions have long since moved on from a Chairman’s whim. You must be able to answer three fundamental questions: why sponsorship? why a particular property? how is it going to achieve the business objective? Building a business case not only relies on an intimate understanding of your own customer base, but also an intimate understanding of the audiences who are attracted to any specific sponsorship property. The ability to compare and contrast the two audiences starts to define which property to buy and the business objectives behind any sponsorship investment.

7) Know what success looks like at the beginning
All brand owners will know to install measurable objectives at the beginning of any marketing campaign. But are those objectives aligned with the success criteria from a rights-holder’s perspective? This often leads to a stalemate when renegotiating. At the beginning of any sponsorship partnership, it is a good idea to pre-agree common evaluation criteria and methodology with the rights holder. Sponsorship negotiation and renegotiation often reaches stalemate when a rights holder and prospect cannot agree on the value of the rights in question. Having an evaluation model in place from the outset is crucial. Demonstrating ROI remains the single most important element of any sponsorship campaign.

8) Remember who’s the customer
The best rights holders are those who appreciate the need for brands to tailor-make sponsorship packages to help drive relevancy and engagement. So buy what YOU want, not what the rights holder wants to sell you. Off-the-shelf sponsorship properties are less likely to stand out in a cluttered environment, so be sure to negotiate rights that differentiate you from the crowd.

9) Consistent execution = memorable campaigns
Resist the temptation to use multiple images with multiple messages and slogans that vary market by market. Less really is more, and the consumer will always recall sponsorships that have had simple, consistent execution.

10) Crisis! What crisis? Plan for it all going wrong!
Go into any sponsorship with your eyes wide open and plan for every eventuality. From cancelled games, to rained out events, to drug charges levelled against a brand ambassador, every sponsorship program needs a well thought-out crisis plan. Do not de-prioritise. Assign a dedicated team to write an issues manual the moment a new sponsorship is signed.

Building a strong communications/PR program begins when the sponsorship is being evaluated not after it has been committed to – Get your H&K Sponsorship team in early to drive winning results.